2018-2020 |
All taxable income |
21 |
For tax years beginning after 2017, the Tax Cuts and Jobs Act (PL 115-97) replaced the progressive corporate tax structure with a fixed corporate tax rate of 21% . |
1993-2017 |
First $ 50,000 |
15 |
The Revenue Reconciliation Act of 1993 raised the maximum corporate tax rate to 35% for corporations taxable income greater than $ 10 million. Corporations with taxable income greater than $ 15 million are subject to an additional tax of 3% of the surplus over $ 15 million, or $ 100,000, the lesser of the two |
|
$ 50,000 to $ 75,000 |
25 |
|
|
$ 75,000 to $ 100,000 |
34 |
|
|
$ 100,000- $ 335,000 |
39 |
|
|
$ 335,000 – $ 10,000,000 |
34 |
|
|
$ 10,000,000 – $ 15,000,000 |
35 |
|
|
$ 15,000,000 – $ 18,333,333 |
38 |
|
|
Over $ 18,333,333 |
35 |
|
1988-1992 |
First $ 50,000 |
15 |
|
|
$ 50,000 to $ 75,000 |
25 |
|
|
$ 75,000 to $ 100,000 |
34 |
|
|
$ 100,000- $ 335,000 |
39 |
|
|
Over $ 335,000 |
34 |
|
1987 |
First $ 25,000 |
15 |
The 1986 Tax Reform Act (TRA86) established a new rate structure in effect for the 1988 tax year and made the rates for the transition year 1987 an average of the pre-TRA rates for 1986 and post-TRA rates for 1988. |
|
$ 25,000 to $ 50,000 |
16.5 |
A new “alternative minimum tax” (AMT) replaced the additional minimum tax, which entered into force in 1987. It required the calculation of an alternative measure of taxable income that reduced or eliminated many elements of tax preferences. The tax was 20 percent of the excess of this “alternative minimum taxable income” (AMTI) above $ 40,000. The $ 40,000 exemption has been reduced by 25 percent of AMTI’s excess over $ 150,000. The excess of AMT over ordinary tax could be carried forward as an ordinary tax credit in future years. In 1998, “small” companies (generally those with average gross revenues of less than $ 5 million) were exempt from AMT. |
|
$ 50,000 to $ 75,000 |
27.5 |
|
|
$ 75,000 to $ 100,000 |
37 |
The maximum capital gains tax rate was capped at 34 percent for 1987, which was to be the rate for the highest corporate tax bracket in 1988 and thereafter, according to TRA86. The maximum capital gain rate was raised to 35% when the highest tax rate bracket was increased in 1993. |
|
$ 100,000- $ 335,000 |
42.5 |
|
|
$ 335,000 – $ 1,000,000 |
40 |
|
|
$ 1,000,000 – $ 1,405,000 |
42.5 |
|
|
Over $ 1,405,000 |
40 |
|
1984-1986 |
First $ 25,000 |
15 |
|
|
$ 25,000 to $ 50,000 |
18 |
|
|
$ 50,000 to $ 75,000 |
30 |
The maximum tax rate on long-term capital gains was 28%. |
|
$ 75,000 to $ 100,000 |
40 |
|
|
$ 100,000 to $ 1,000,000 |
46 |
|
|
$ 1,000,000 – $ 1,405,000 |
51 |
|
|
Over $ 1,405,000 |
46 |
|
1983 |
First $ 25,000 |
15 |
Since 1983, professional incorporated firms (“personal service companies”) have been taxed on all taxable income at the corporate tax rate applicable to the highest income bracket. |
|
$ 25,000 to $ 50,000 |
18 |
|
|
$ 50,000 to $ 75,000 |
30 |
The maximum tax rate on long-term capital gains was 28%. |
|
$ 75,000 to $ 100,000 |
40 |
|
|
Over $ 100,000 |
46 |
|
1982 |
First $ 25,000 |
16 |
|
|
$ 25,000 to $ 50,000 |
19 |
|
|
$ 50,000 to $ 75,000 |
30 |
The maximum tax rate on long-term capital gains was 28%. |
|
$ 75,000 to $ 100,000 |
40 |
|
|
Over $ 100,000 |
46 |
|
1979-1981 |
First $ 25,000 |
17 |
|
|
$ 25,000 to $ 50,000 |
20 |
|
|
$ 50,000 to $ 75,000 |
30 |
The maximum tax rate on long-term capital gains was 28%. |
|
$ 75,000 to $ 100,000 |
40 |
|
|
Over $ 100,000 |
46 |
|
1975-1978 |
First $ 25,000 |
20 |
|
|
$ 25,000 to $ 50,000 |
22 |
|
|
Over $ 50,000 |
48 |
The holding period for the treatment of long-term capital gains on assets was extended from 6 months to 9 months in 1977 and to 12 months in 1978. The rate remained at 30%. |
|
|
|
|
1971-1974 |
First $ 25,000 |
22 |
|
|
Over $ 25,000 |
48 |
The maximum tax rate on long-term capital gains has been raised to 30%. |
1970 |
First $ 25,000 |
22.55 |
Includes 2.5% Vietnam War surcharge. |
|
Over $ 25,000 |
49.2 |
The maximum tax rate on long-term capital gains has been raised to 28%. |
1968-1969 |
First $ 25,000 |
24.2 |
From 1969 to 1986, companies were also subject to an “additional minimum tax” on certain “tax preference” items (such as percentage depletion, accelerated depreciation) above a certain amount. For the 1969 through 1976 tax years, the tax was 10 percent of tax preferences over $ 30,000; after 1976, the tax was 15 percent on preferences exceeding the greater of $ 10,000 or ordinary income tax. |
|
Over $ 25,000 |
52.8 |
Rates include the 10 percent Vietnam War surcharge. |
1965-1967 |
First $ 25,000 |
22 |
|
|
Over $ 25,000 |
48 |
|
1964 |
First $ 25,000 |
22 |
|
|
Over $ 25,000 |
50 |
|
1952-1963 |
First $ 25,000 |
30 |
From April 1, 1954 to calendar year 1969, the maximum tax rate on capital gains was 25%. |
|
Over $ 25,000 |
52 |
|
|
|
|
|
1951 |
First $ 25,000 |
28.75 |
These rates reflect a tax increase (for the Korean War) that took effect on March 31, 1951. The maximum tax rate on capital gains was also increased to 26%. |
|
Over $ 25,000 |
50.75 |
|
1950 |
First $ 25,000 |
23 |
A surplus profits tax was also in effect from July 1950 through the 1953 calendar year. The tax was 30 percent of an adjusted profit figure reduced by credits for the pre-war profit level. It was not deducted from income tax, but the sum of taxes on income and excess profits was capped at a given percentage of income (62% to 70%). |
|
Over $ 25,000 |
42 |
From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. |
1946-1949 |
Taxable income of $ 50,000 or less: |
|
These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. |
|
First $ 5,000 |
21 |
|
|
Next $ 15,000 |
23 |
|
|
Next $ 5,000 |
25 |
|
|
Next $ 25,000 |
53 |
From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. |
|
Taxable income greater than $ 50,000 |
38 |
|
1942-1945 |
Taxable income of $ 50,000 or less: |
|
These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. |
|
First $ 5,000 |
25 |
|
|
Next $ 15,000 |
27 |
From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. |
|
Next $ 5,000 |
29 |
|
|
Next $ 25,000 |
53 |
|
|
Taxable income greater than $ 50,000 |
40 |
|
1941 |
Taxable income $ 38,461.54 or less: |
|
These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. |
|
First $ 5,000 |
21 |
|
|
Next $ 15,000 |
23 |
|
|
Next $ 5,000 |
25 |
|
|
Next $ 13,461.54 |
44 |
|
|
Taxable income greater than $ 38,461.54 |
31 |
|
1940 |
Taxable income $ 31,964.30 or less: |
|
From June 1940 until the end of 1945, a profit tax in excess of the pre-war average earnings was also imposed. It has been taken into account, either as a deduction or as a credit, for income tax and other excess profit tax. |
|
First $ 5,000 |
14.85 |
Rates for 1940 include additional “defense tax” rates that are incorporated into regular rates for subsequent years. |
|
Next $ 15,000 |
16.5 |
|
|
Next $ 5,000 |
18.7 |
|
|
Next $ 6,964.30 |
38.3 |
|
|
Taxable income greater than $ 31,964.30, not exceeding $ 38,565.84: |
|
|
|
First $ 5,000 |
15.4 |
|
|
Next $ 15,000 |
16.9 |
|
|
Next $ 5,000 |
18.9 |
|
|
Next $ 13,565.84 |
36.9 |
|
|
Taxable income greater than $ 38,565.84 |
24 |
|
1938-1939 |
Taxable income $ 25,000 or less: |
|
|
|
First $ 5,000 |
12.5 |
|
|
Next $ 15,000 |
14 |
|
|
Next $ 5,000 |
16 |
|
|
Taxable income greater than $ 25,000 |
19 |
|
1936-1937 |
First $ 2,000 |
8 |
An additional surcharge ranging from 7 percent to 27 percent was imposed on retained earnings. |
|
More than $ 2,000, not more than $ 15,000 |
11 |
|
|
More than $ 15,000, not more than $ 40,000 |
13 |
|
|
Over $ 40,000 |
15 |
|
1932-1935 |
All taxable income |
13.75 |
An additional “declared value” excess profit tax, based on profits exceeding a percentage of the value of the company’s shares, was in effect from 1933 to 1945. This was a deduction for the purposes of the company. ‘income tax. |
1930-1931 |
First $ 3,000 |
0 |
|
|
Over $ 3,000 |
12 |
|
1929 |
First $ 3,000 |
0 |
|
|
Over $ 3,000 |
11 |
|
1928 |
First $ 3,000 |
0 |
|
|
Over $ 3,000 |
12 |
|
1926-1927 |
First $ 2,000 |
0 |
|
|
Over $ 2,000 |
13.5 |
|
1925 |
First $ 2,000 |
0 |
|
|
Over $ 2,000 |
13 |
|
1922-1924 |
First $ 2,000 |
0 |
|
|
Over $ 2,000 |
12.5 |
|
1919-1921 |
First $ 2,000 |
0 |
|
|
Over $ 2,000 |
ten |
|
1918 |
First $ 2,000 |
0 |
|
|
Over $ 2,000 |
12 |
|
1917 |
All taxable income |
6 |
An additional tax on “excess profits” and / or “war profits” was in effect from 1917 to 1922. It was allowed as a deduction for the calculation of income tax. |
1916 |
All taxable income |
2 |
|
1913 (March 1) -1915 |
All taxable income |
1 |
|
1909-1913 (February 28) |
First $ 5,000 |
0 |
|
|
Over $ 5,000 |
1 |
|